After making a run at trendline resistance at 1.4270 and November highs in the low 1.4280s overnight in Asia, EUR/USD is showing some bounce in early US trade.
One tailwind for EUR/USD is continued intervention from the likes of South Korea to weaken the won as the Bank of Korea diversifies a significant portion of the reserves received via intervention into euros. Firm oil prices are also supportive as MidEast central banks do the same. Throw in the not-insignificant chance that the ECB will hike 50 bp at the meeting scheduled for Thursday( 45% at the moment).
Protection of 1.4275 barriers and profit-taking ahead of old highs are the hurdles EUR/USD has to overcome near-term. EUR/JPY sales ahead of 120.00 are a stumbling block as well.
EUR/USD trades at 1.4246 presently.
